Expedia 2007 Annual Report Download - page 68

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Report of Independent Registered Public Accounting Firm
The Board of Directors and Stockholders
Expedia, Inc.
We have audited the accompanying consolidated balance sheets of Expedia, Inc. as of December 31, 2007
and 2006, and the related consolidated statements of income, changes in stockholders’ equity and comprehen-
sive income, and cash flows for each of the three years in the period ended December 31, 2007. These
financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
consolidated financial position of Expedia, Inc. at December 31, 2007 and 2006, and the consolidated results
of its operations and its cash flows for each of the three years in the period ended December 31, 2007, in
conformity with U.S. generally accepted accounting principles.
As discussed in Note 2 to the consolidated financial statements, the Company adopted Financial
Accounting Standards Board (“FASB”) Interpretation No. 48, Accounting for Uncertainty in Income Taxes —
an interpretation of FASB Statement No. 109, effective January 1, 2007; and the Company adopted Statement
of Financial Accounting Standard No. 123 (revised 2004), Share-Based Payment, effective January 1, 2006.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), Expedia, Inc.’s internal control over financial reporting as of December 31, 2007, based
on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission and our report dated February 20, 2008 expressed an unqualified
opinion thereon.
/s/ Ernst & Young LLP
Seattle, Washington
February 20, 2008
F-2